If Estimated Direct Raw Materials and Direct Labour Costs Are

question 4

Multiple Choice

If estimated direct raw materials and direct labour costs are $50 000 in total, what is the direct cost per unit if forecast production is 5000 units?

• A) $10
• B) $25
• C) $20
• D) $15

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Definitions:

Franchisers

Businesses that grant licenses to individuals or companies allowing them to operate under the franchiser's brand and sell its goods or services.

Franchising

Franchising is a method of business expansion where a company (franchisor) grants the right to an individual or group (franchisee) to do business using the franchisor's brand and operational model.